Stuck in translation: Why public agencies seldom succeed implementing performance budgeting : A case study on output controls of the Swedish Armed Forces

Abstract: Despite its benefits, output controls are less prevalent than its counterpart input controls in public sector agencies. Performance budgeting aligns the input of resources with the output of products and services systematically, enabling assessment of the efficiency and effectiveness of organizational activities. Yet, implementing performance budgeting is challenging, as observed in the Swedish Armed Forces, thus constituting a suitable case to explore this thesis’ research question – why do public sector agencies seldom succeed implementing performance budgeting?   The inquiry is grounded in the multi-layered institutional framework of performance budgeting by Ho ​(2018)​ which, along with extant literature, is developed into propositions guiding the data gathering. The empirics are examined from a discursive perspective with the theory of multiple institutional logics​ (Besharov & Smith, 2014)​ and its technical dimension with the sociology of translation ​(Latour, 1999)​. Findings indicated that the present financial model did not achieve performance budgeting due to a lack of internal transparency, as the model were perceived as convoluted, and that military and financial performance were assessed and reported in separate structures. Looking ahead from an institutional perspective, the recently developed evaluation model, might assist the development of performance budgeting as its underpinning logic of mission command seems compatible with program logic. However, current lack of standardization and managerial infrastructures are indicative of an ineffective translation process, limiting the representational value of the accounting and performance inscriptions, thus limiting their ability facilitate stable spatial and temporal control.